We propose a model where both R&D and ICT investment feed into a system of three innovation output equations (product, process and organizational innovation), which ultimately feeds into a productivity equation. We find that ICT investment and usage are important drivers of innovation in both...

The ambiguous relationship between competition and innovation as they appear in the economics literature is discussed. Due to the ambiguity of the type of relationship (positive or negative) between these two features, the need for a more dynamic model is apparent. A review of the literature...